Managing commercial real estate

Businesses as well as residents of Ohio may want to learn more about commercial real estate, what it involves, management and using it as an investment. From shopping malls to restaurants to office space, commercial real estate is quite different from the residential real estate.

Most of the time, commercial real estate has a lease involved; it is usually rented and has the purpose of housing a business or income generating operation. According to investment sources, there are different classes of commercial real estate. Knowing the difference will be of value, when you are investing and leasing this type of real estate. It may help you in making decisions and going forward successfully.

Different types of commercial real estate

The four main classes are the following:

• Office space

• Industrial

• Multi-family

• Retail

Investing in this type of real estate

Commercial real estate will involve, most likely, more of a capital outlay than residential property. It invites a more sophisticated knowledge of this field. Understanding business property may help you in the event of a dispute. Real estate litigation is common, and knowing about the pitfalls and advantages of such an investment may be very valuable.

Rental income from this type of investment is often the goal. Your capital may appreciate as well.

Leasing commercial space

You may be part of a group of investors who collect rent. Owning commercial real estate involves management by the owner. You may want to have the help of a property management company, as you will be responsible for the following:

• Finding tenants, managing them and retaining them

• Overseeing leases and financing options

• Coordinating property upkeep

• Marketing the property

Turnover may be costly

You will be responsible for adapting a space to a new tenant when the type of business changes. It may change from a retail shop to a restaurant, which can happen with commercial properties that need to have a tenant fill the empty space.

Managing commercial real estate takes knowledge as well as capital. Having help with leasing may be a wise move for those who own this type of property.